Furthermore, as benchmark administrators amalgamate into larger entities, they resemble a monolithic fortress, potentially restricting outsiders from gleaning essential data.
A startling revelation from the FCA suggests a stagnant dance floor. Some benchmark aficionados haven’t changed dance partners in half a decade, pointing fingers at prohibitive switching costs and an absence of alternative melodies to dance to.
Dominant Titans in the Market
In a world where variety usually spices things up, a whopping 90% of the income from UK credit rating operations flows from just three titans: Moody’s Investors Services, S&P Global Ratings, and Fitch Ratings. This triumvirate rakes in a sumptuous feast of up to £100 million ($126 million) annually.
For many sizable firms, the omnipresent shadow of regulatory and investor mandates forces them to keep filling the coffers of these three giants. Such allegiance, the FCA muses, could inflate price tags for those tethered to certain data service providers.
